Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4) a company estimates that warranty expense will

4) A company estimates that warranty expense will be 4% of sales. The company's sales...

60.1K

Verified Solution

Question

Accounting

4) A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:

A) Debit Estimated Warranty Liability $7,400; credit Cash $7,400. B) No entry is recorded until the items are returned for warranty repairs. C) Debit Warranty Expense $7,400; credit Sales $7,400. D) Debit Estimated Warranty Liability $7,400; credit Warranty Expense $7,400.

E) Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

I just did a \"use of selective and differential media lab\" and one of the questions...

Biology
Q

Fuel tanks for barbecues contain propane and n-butane. At 120oF, in an essentially full tank of...

Chemistry
Q

What is the schrondigers cat theory?

Physics
Q

Two stationary positive point charges, charge 1 of magnitude 3.55 nC and charge 2 of magnitude...

Physics
Q

Whichenvironmentalprinciple statesthat when twospecies occupythe same niche,one species willout-compete theother andultimately onespecies will beexcluded?A. Competitive...

Biology
Q

In differential centrifugation a None of the these b The more dense particles sediment form...

Biology
Q

Nicholas borrowed 250 from his parents to buy a video game system has agreed to...

Basic Math
Q

Initially there were 3 liters of blue paint and 3 liters of crimson paint. A...

Basic Math
Q

J14 2x 0 M 5x 7 Solve for x Then use that value of x...

Algebra
Q

Swifty Company buys land for $49100 on 12/31/17. As of 3/31/18, the land has appreciated...

Accounting
Q

The unadjusted trial balance at the end of the year includes the following: ...

Accounting
Q

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.0...

Accounting